Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

560.0000 UNITED STATES, SALE BY—"SURPLUS PROPERTY"

Annotation 560.0090

560.0090Gold and Silver Olympic Coins. Sales to the public by depository financial institutions (banks or savings and loans) of gold and silver Olympic coins, which are legal tender of the United States, under consignment agreements with the United States Mint are sales by the United States and are not subject to either the sales or use tax under sections 6352 and 6402 respectively, notwithstanding the fact that the financial institutions, as consignees, had power to pass title. The exemption for sales by the United States takes precedence over the general rule for consignees for the following factors:

(1) Title to the coins remains with the United States, and the institutions hold the coins in trust for the United States.

(2) The United States sets the retail selling price and the institutions have no authority to raise or lower the price.

(3) The United States has not authorized the institutions to collect tax or tax reimbursement from the customers.

(4) The institutions make no profit on the transactions, retaining only a discount to cover the costs of sales.

(5) All unsold coins must be returned to the United States by a specified date, and the institutions bear the risk of loss. 6/6/84.

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